Could you legally write off some debt? Answer below to get started.
This isn’t a full fact find, MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
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For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Has a letter from Cabot Financial Debt Collectors landed on your doorstep? Are you feeling unsure and have questions about this debt? Don’t worry; this guide is here to help.
Every month, over 170,000 people visit our website for advice on situations just like yours. We understand it can be confusing, and you might be asking yourself: where has this debt come from? Should I pay it? Is this even real? What if I can’t afford to pay?
In this article, we’ll help you understand:
Who Cabot Financial Debt Collectors are and what they do.
How you can confirm if the debt is yours.
The steps to take if Cabot Financial Debt Collectors contact you.
Possible ways to pay or even write off your debt.
What you can do if you are unable to afford the payment.
Our team has personal experience with debt collectors, so we know how troubling it can be, especially if you’re in a vulnerable condition. A significant survey completed by StepChange UK found that 83% of the 1794 clients included had at least one creditor who did not take their vulnerabilities into account1.
Luckily, you’re not alone in this. Ready to learn more about how to handle this situation? Let’s get started!
Could you legally write off some debt?
There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.
Answer below to get started.
This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.
Why Is Cabot Credit Management Group Contacting You?
Cabot Financial will be contacting you because they think that you owe money to their client or have bought your debt.
They are starting the debt recovery process with a letter or email.
They will let you know by sending an LBA. This is a Letter Before Action to tell you to pay, make arrangements to pay or face further action.
If you cannot afford to pay and you’re certain the debt is yours, you can prevent any further action by entering into one of the UK’s several debt solutions. StepChange found the average unsecured debt amount per client increased by 27% year-on-year to £16,1742, so it’s crucial that you try your best to find an effective way to pay off yours.
There are two ways to see if you really do owe money:
Use Credit Reference Agencies
You can use credit referencing agencies like Experian to see if any business has stated you owe them money.
Send a prove the Debt Letter
But the better way to check, buy yourself time and maybe avoid having to pay Cabot Financial a penny is to send a prove the debt letter.
What’s this? Read on!
How Should You Reply to Cabot Debt Collectors?
Debt verification is your first step when dealing with debt collection agencies.
You can ask Cabot Financial to provide proof you owe the money and that means they might have to go back to the company they purchased the debt from and get a signed agreement that you defaulted on.
That’s not easy and it could take time and maybe isn’t available.
Without providing you with proof you never have to pay, unless ordered by a judge. That is why you should keep a copy of your letter and show it to the judge in the event that they take you to court.
The judge should see that Cabot Financial has failed to provide proof you owe the debt and you will not have to pay. You should send this letter no matter what because it can give you some breathing space to think. We can help you write the letter with our free prove-it templates.
The only time you do not need to send this letter is when the debt has become too old to be collected. Take a look at what this forum user has experienced:
Mickymac101 has a really old debt that Cabot Financial is trying to recover. But it looks like the debt is unenforceable due to being more than six years old.
If you are in this situation, you can use our statute-barred guide instead and send a different type of response.
How a debt solution could help
Some debt solutions can:
Stop nasty calls from creditors
Freeze interest and charges
Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Situation
Monthly income
£2,504
Monthly expenses
£2,345
Total debt
£32,049
Monthly debt repayments
Before
£587
After
£158
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
What Can You Do If Cabot Financial Proves Your Debt?
The hope is that once you send a letter asking for proof that you will never hear from Cabot Financial again.
But around one month later, Cabot Financial could send you the evidence that makes you responsible for paying. Ignoring this proof could mean legal action, so it is best to come to some type of arrangement to pay.
They will accept a repayment plan to clear the balance of the debt over many months, sometimes even years. Agreeing to this is just like agreeing to other credit commitments. It is serious!
Keep in mind that you need to get a repayment plan agreement in writing from them before you make your first payment. This will help keep your personal records updated and make it impossible for Cabot Financial to challenge you again in the future – just make sure that you stick to your agreed payments!
Cabot Financial have an online payment portal which you can make one-off payments or even pay your scheduled plan. This is protected with your personal password. They allow for payment to be made over the phone if that is something that you prefer.
The Cabot website allows you to access your debt account at any time.
This account tells you how much has been paid off and any other important information about your debt account with Cabot Financial Europe Limited.
‘Customers’ can also make payments to your plan directly from your bank account with a bank transfer, postal order, standing order, direct debit or recurring payment, but you will need your reference number to hand when setting it up.
They do not accept credit cards at the time of writing but this may change. The score on your credit file should improve once the debt has been paid back or your payment plan has finished.
What can you do if Cabot Financial tries to collect a debt that you don’t owe?
If you think that Cabot Financial is trying to collect a debt that you don’t owe, we recommend getting some advice on disputing a debt in your specific circumstances. We have linked some debt charities above and at the bottom of this page that will be able to give you free and specific advice on dealing with this situation.
You may need to contact Cabot Financial and explain your reasoning as to why you don’t owe them the money they claim. We have some free sample letter templates that you can use to help you get your point across.
From our experience, there are a couple of reasons why you won’t owe a debt that come up time and time again.
It’s too old: unsecured debts become statute-barred 6 years after you last made payment or wrote to your creditor about it (5 years in Scotland). After this window, there is no legal avenue for your creditors to pursue to collect it.
Wrong person: debt might be taken out illegally in your name without you knowing. A debt collection company must prove that you owe the debt before you are forced to pay.
Wrong address: everyone has forgotten to update their contact details after moving house at least once! If you think that the debt collection agency has sent their communications to the wrong address, tell them!
Are there any Cabot Financial Scams?
Many people are unclear if Cabot Financial is a scam or a legitimate business because they have never heard of them. Cabot Financial is FCA-authorised and a member of the Credit Services Association (CSA).
It is possible that Cabot Financial, despite its legal status, will engage in unethical behaviour.
This could be sending threatening letters, calling at all times of the day, or even showing up at your door. We’ll outline in more detail below about how you can stop this from happening.
They provide a thorough complaints procedure on their website if you want to file a grievance against them. You can also take your complaint to the ombudsman if it still needs to be resolved.
Does Cabot Financial Take You to Court?
Yes. If you do not reply to their letter or make arrangements to pay, Cabot could decide to take legal action.
They will ask a county court judge to issue a court order which makes you legally responsible to pay. If you still refuse to pay, they could escalate your debt recovery to bailiffs. When they contact you it’s important to respond, otherwise, they could take court action.
Can Cabot Financial send bailiffs?
Ignoring Cabot Financial might be the easy choice, but it is not a smart one. By not replying you are increasing your chances of being taken to court.
If they do take you to court and win the case, and then you persistently refuse to pay or make a repayment agreement, they could seek to use bailiffs.
However, Janine, our financial expert, explained that while debt collectors can visit your home for payments, they cannot come to your workplace, act threateningly, force payment, or discuss your finances with others. If they violate these rules, you can complain.
What If You Can’t Afford to Pay?
If you can’t afford to pay back your debt even with a repayment plan, you may need to consider a debt solution. Keep in mind that most debt solutions are only applicable to unsecured debts.
It is very important that you speak to a specialist who can help you work out which debt solution is best for you. These companies all offer free financial advice and debt counselling services:
You can get an IVA if you owe several thousand of pounds to two or more creditors. Once approved, your IVA will usually last for 5 or 6 years and each month you will pay an agreed sum that is distributed amongst your creditors.
One of the major benefits of an IVA is that your creditors can’t contact you during, or after it. The other great thing about an IVA is that any outstanding debts are written off at the end of your IVA period.
Trust Deed
IVAs are not available in Scotland. Instead, there is a Trust Deed agreement.
These work in the same way as an IVA in that you make monthly payments that are distributed amongst your creditors. Your creditors can’t contact you while your Trust Deed is on going and any remaining debts are written off at the end.
Debt Relief Order (DRO)
If you owe money but have very little income and own nothing of great financial value, you may be eligible for a DRO.
Once your DRO application is accepted, you stop making payments towards your debts and your creditors must freeze your interest. This lasts for 12 months and your creditors can’t contact you during this time.
After 12 months, your financial situation is assessed and if it isn’t better, your outstanding debts may be written off.
Bankruptcy
Bankruptcy has a negative reputation but it is often your only way of getting a financial fresh start.
Once your application is approved, your bankruptcy period starts and usually lasts 12 months. You may find that you have to sell your home or your car as part of your bankruptcy agreement.
Once you have finished your bankruptcy period, any outstanding debts could be written off.
If you don’t own anything of significant value, you may be eligible for a minimal asset process (MAP) instead. This is more straightforward than sequestration and only lasts for 6 months.
Thousands have already tackled their debt
Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.
Natasha
I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.
How Can You Stop Cabot Financial From Calling You?
One of your rights as a debtor is to make clear how and when you want to be contacted.
If Cabot Financial is calling you frequently and you are feeling harassed, you should write to them and explain you would like to be contacted at a certain time of the day only.
You can even request no calls at all and state that all correspondence must be through the mail.
If they do not stick to your preferences, you could make an official complaint. We will teach you how to make a complaint further down our guide.
What Can You do about Cabot Harassment?
There are actions you can take if you are subjected to Cabot harassment. Debt collectors like Cabot Financial are obligated to treat you fairly, with dignity, and with respect regardless of how much money you owe. You might be wondering what is deemed as harassment, so if Cabot Financial have ever done any of the following things, they very well might be harassing you:
Calling at unreasonable times, such as very early in the morning or late at night.
Calling your workplace or speaking to anyone other than you (or anyone you’ve given permission to speak to) about your debt.
Threaten you with violence or harm
Use obscene or profane language
Call you repeatedly
As you can see, the user of Money Saving Expert above was harassed on New Year’s Eve with two phone calls in one minute! It can be extremely stressful receiving these phone calls and threats. However, you don’t have to put up with this.
While debt collectors have the right to take certain actions to recover what you owe them, there are still several things they can’t do. You must know your rights to avoid being taken advantage of. If you want to learn more, please visit our related article on this and take a quick look at the table below.
Debt Collectors Can
But They Can’t
Contact you by phone or mail.
Call you after 9pm or before 8am.
Conduct home visits (on rare occasions) and knock on your door.
Forbily enter your home, or stay if you ask them to leave.
Threaten to take you to court by suing you for payment on a debt.
Harrass you, including threats of violence, repeated calls and visits, or abusive language.
Negotiate a debt settlement. Tip: make sure to get this new arrangement in writing.
Visit your workplace.
Access your bank account, but only after a court judgment has been made.
Take anything from your home or threaten to do so.
Sell your debt.
Speak to other people about your debt without your permission.
Contact you frequently.
Keep doing so if you request that they reduce communications.
Cabot Financial Debt Collection Contact Details
Address:
1 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4UA
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